relationship with suppliers is important? For many procurement organizations. ppliers have become an important factor in their planning. Suppliers are often a procurement organization’s secret competitive weapon, their hidden resource, their competitive edge. These competitive gains can manifest themselves in a wide range of areas. from better prices and delivery times to increased opportunities to consider and Implement innovative practices. Such Improvements will not be realized without meaningful leadership trom business owners and executives Leading companies develop tailored supply strategies that are directly linked to their corporate strategies.
These leaders emphasize shareholder-value creation, revenue growth, and cost competitiveness, and establish specific programs with their key suppliers in order to ensure that these priorities are product competitiveness, going beyond the narrow focus of cost reduction. Building up a good relationship with your supplier is important for obvious reasons. When you have a solid relationship built on mutual trust, you know you can depend on your supplier to deliver on time.
Likewise, he knows he can rely on you to pay on time. But this is worth considering too, if you are in a position of trust with your upplier, you are in a position to negotiate better terms. This is particularly important when you are first starting out and money is tight. Cash flow can be improved no end if you can secure better terms on credit. Alternatively, your supplier may offer credit in the form of a percentage discount on your invoice if you pay within a fixed period such as ten days.
Or credit may be offered by way of quantity discounts, equipment loans and consignment sales, i. e. payment only on sale of goods. Whatever form it takes, credit is an important consideration and a good reason to build up positive relationships with your uppliers. It allows you to generate revenue from the sale of the goods you buy before you actually have to pay for them. Trade credit is often easier to secure than a similar short-term, interest-free loan from the bank because you do not require collateral.
This is because the supplier is usually insured on the credit they offer to cover their risk. With all this in mind, when you are first deciding on which supplier to go for it’s a good idea to determine which ones can serve most of your needs. This way, you will not have to work out terms with too many companies. Emphasize to otential trading partners that you are seeking to establish a long term relationship and if you’re in a position to do so, share your annual projections for cash flow.
The supplier will trust your ability to cover payments if they have an idea of your incomings, outgoings and financial obligations. Always, always have your credit terms in writing. As time goes on, and your relationship with your supplier becomes more stable, you can secure longer periods before payment is required. To better the chances of extending your credit, make sure you always pay on time or even ahead of schedule hen your balance sheets permit.
And whatever you do, if you want to keep on the good side of your supplier, ensure that you do not fall into the trap of testing the limits of his credit terms. You could stand to pay penalty charges for late payments, but worse, you will lose the trust of your supplier. If this is the case, your credit could well be revoked. For many procurement organizations, suppliers have become an important factor in manifest themselves in a wide range of areas, from better prices and delivery times to increased opportunities to consider and implement innovative practices.
Such mprovements will not be realized without meaningful leadership from business Why choosing the lowest price is not always a right decision/choice. The lowest price is not always the best value for money. If you want reliability and quality from your suppliers, you’ll have to decide how much you’re willing to pay for your supplies and the balance you want to strike between cost, reliability, quality and service. Price is important, but it shouldn’t be the only reason you choose a supplier.
Lower prices may reflect poorer quality goods and services which, in the long run, may not be the most cost-effective option. Be confident that your supplier can make a sufficient margin at the price quoted for the business to be commercially viable. Wherever possible, meet potential suppliers face to face and see how their businesses operate. Check whether your supplier will be outsourcing any work to subcontractors, or relies on other suppliers for critical components or services. If so, you may want to assess these suppliers as well.
Remember that your business’ reputation may be Judged on the labour practices and environmental record of your suppliers. It makes good business sense to consider the ethical and environmental dimensions of your supply hain. Conclusion Last but not least, Procurement is a complex process that can help businesses to become more efficient because all goods and services that they buy will be of the right quality, quantity, price and they will be delivered ‘Just in Time’, thereby reducing the need to stockpile goods and parts.
Reducing the amount of goods that are stored reduces the amount of resources used to store them. It also ensures that they are not overly transported, which means there is less risk of them being damaged and no resources are required to transport them. Buying goods that are of the right quality eans that they are not too good for the role that they have to fulfill, so they will be the right price. But they will also not be sub-standard, so there is less chance of the parts and goods causing defects.
Creating good relationships with suppliers also mean that they will be flexible and help out if a sudden increase in volume of goods is required. So procurement really is vital and can really transform companies when it is done right, so although procurement may not actually produce the goods that are sold it can actually help to increase profits, often quite dramatically. References: http://www. publicprocurementguides
Write two paragraphs
Diversity in Christianity. (1) What are the three main branches of Christianity? (2) Historically, how do we account for all of the various denominations in Christianity? (3) What is the relationship between Christianity and other religions?
Journals with economic writing can be successfully completed by composing 2 solid paragraphs. NOTE: we may also use journals as an additional form of communicating questions to the professor. Questions will be answered when the professor grades the journal. More immediate concerns should be addressed please right away,